Aviation’s path to net-zero emissions just gained momentum. The International Civil Aviation Organization (ICAO) is launching the Finvest Hub, a global funding platform designed to connect aviation sustainability projects with investors. With backing from major industry players, this initiative will accelerate the development of sustainable aviation fuels (SAF) and cleaner energy solutions, ensuring the sector remains on course for a greener future.
The official announcement came with a Letter of Intent signed at ICAO’s Global Implementation Support Symposium. ICAO Secretary General Juan Carlos Salazar, along with representatives from Airbus, Boeing, the International Power-to-X Hub, and GenZero, confirmed their commitment to supporting the Finvest Hub. ICAO Council President Salvatore Sciacchitano highlighted the critical role of financial partnerships in making aviation’s environmental transition a success. He emphasised that this initiative will not only fund key projects but also support developing nations in achieving their sustainability goals.
The Finvest Hub will bridge the gap between sustainability projects and investors by providing structured funding pathways and fostering collaboration with governments, financial institutions, and private investors. The platform will focus on overcoming financial barriers for developing nations, offering technical guidance, training, and policy support to help them attract investment. By ensuring access to innovative financing solutions, ICAO aims to increase the production of SAF and other low-carbon aviation fuels, positioning these projects as key drivers of economic growth and environmental progress.
Aviation currently contributes approximately 3% of global carbon emissions, making decarbonisation a pressing challenge. ICAO’s Global Framework for Sustainable Aviation Fuels, adopted in Dubai, sets the target of reducing CO2 emissions from international aviation by 5% by 2030. SAF production is expected to expand significantly, with Boston Consulting Group forecasting demand to reach 10 million metric tonnes per annum (MTPA) by 2030 and further growth anticipated by 2050. Despite current overcapacity causing lower prices and shrinking margins, experts predict that rising demand will eventually restore profitability and encourage reinvestment.
Europe is leading the charge in SAF production. A €1.5 billion joint venture between Power2X and Advario is set to build the world’s largest Electric Sustainable Aviation Fuel (e-SAF) facility in the Netherlands by 2030, capable of producing over 250,000 tonnes of SAF annually. This output could power around 7,000 transatlantic flights, reinforcing Europe’s leadership in aviation decarbonisation. However, global policy uncertainties remain, including regulatory frameworks in the U.S. and Asia that will influence long-term market dynamics.
North America is also a key player in aviation fuel development. A Research And Markets report forecasts that the aviation fuel market could grow to $325.98 billion by 2030, with a compound annual growth rate (CAGR) of 8.5%. The region’s strong aviation infrastructure, particularly in the U.S. and Canada, positions it as a major driver of SAF expansion. Canada is experiencing the fastest growth in aviation fuel demand, spurred by increased air traffic, cargo operations, and military adoption of SAF for emission reductions and energy security. Industry giants like ExxonMobil, Chevron, BP, Shell, and TotalEnergies are at the forefront of this transition.
In addition to SAF, Lower Carbon Aviation Fuel (LCAF) offers another pathway to reducing aviation emissions. As a CORSIA-approved fossil-based fuel, LCAF must meet strict sustainability criteria, including at least a 10% reduction in lifecycle emissions from the baseline of 89 gCO2e/MJ. This is achieved through carbon capture, renewable hydrogen, and methane emission reductions. While SAF cuts emissions during fuel combustion, LCAF focuses on reducing emissions during production, offering complementary solutions to aviation’s decarbonisation efforts.
The launch of ICAO’s Finvest Hub marks a crucial step toward net-zero aviation. With significant investments in SAF, LCAF, and other sustainable solutions, the industry is well-positioned to meet its 2050 climate targets. By leveraging financial innovation and strategic partnerships, ICAO is ensuring that the aviation sector remains a leader in global sustainability efforts.
Avation PLC (LON:AVAP) is a commercial passenger aircraft leasing company owning a fleet of aircraft which it leases to airlines across the world. Avation’s future focus are new technology low CO2 emission aircraft.
